Record room · 22 July 2026 · 1 min read
When bank statements and management accounts tell different stories
Different totals do not automatically mean one record is wrong. The first task is to identify what each record measures.
A funding file may show R4.2 million in annual sales while deposits into the operating account total R3.6 million. Treating that gap as a mistake is premature. Sales may include invoices not yet paid; deposits may include owner funding, VAT, transfers between accounts or cash receipts recorded in another period.
Align the period first
Confirm that the management accounts and statements cover identical opening and closing dates. A year ending February cannot be compared directly with twelve statements ending December. Check whether all trading accounts, merchant facilities and foreign-currency accounts are present.
Build a bridge, not an excuse
Start with invoiced revenue. Adjust for opening and closing debtors, credit notes, VAT treatment and receipts deposited elsewhere. Separately remove transfers, loans and capital contributions from bank inflows. The bridge should explain categories using source records, not merely force one total to equal another.
Keep the explanation visible
Place the reconciliation beside the application schedule and label whether figures are VAT-inclusive, cash-based or accrual-based. If an amount remains unexplained, say so and state its size. A transparent residual is more useful to a reviewer than an unsupported balancing entry.